Japan-funded public works projects also controlled by cartel: report
by ARIES RUFO, abs-cbnNEWS.com/Newsbreak | 02/05/2009 2:44 PM
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The cartel behind the manipulation of the bidding process in public works projects is so deeply entrenched that its operation is not limited to World Bank (WB)-funded projects.
A document provided to abs-cbnnews.com/Newsbreak showed that projects funded by the Japan Bank for International Cooperation (JBIC) were also not spared by the cartel in the bid manipulation and the awarding of the projects at the Department of Public Works and Highways (DPWH). The JBIC is a Japanese governmental financial aid institution.
Like the bidding process in WB-funded projects, at the core of the bid fixing were colluding public works officials favored contractors.
Samar road project
One of these projects is the P1.4 billion Calbayog-Gatanguit arterial road project in Samar funded under a JBIC loan. The project, which covers the improvement and upgrading of about 52.7 kilometers of existing road, began in Nov. 2006 and is scheduled to be completed in August.
The winning bidders were E. C de Luna Construction Corp. and China Road and Bridge Construction, two of the seven companies blacklisted by the WB for collusion in its funded projects.
The project was awarded despite protests by one of the participating bidders, Guangdong Construction Engineering Group Co., that irregularities tainted the bidding process. The state-owned Guangdong is one of the top 20 construction firms in China.
Based on the letter-complaint filed by Guangdong resident manager Venicio Ramos, on Dec. 14 2005, the firm submitted its bid for the project 15 minutes before the Bids and Awards Committee (BAC) closed the submission of documents.
However, a staff identified as Michelle, “refused to receive the sealed bids submitted by my company and refused to stamp and acknowledge the submission and receipt of the bid proposals” submitted by Guangdong representative Wei Qing.
Qing was told by the staff to wait for official notice by the BAC.
As the BAC began the process of opening the bids at the DPWH Main Conference Room, Qing was told to step out on the ground that Guangdong’s bid had been rejected for late submission.
E.C. de Luna-China Road
To add insult to injury, Ramos said the BAC awarded the project to E.C. de Luna and China Road and Bridge Construction “when records will show that they are not qualified” in the first place.
The rejection of Guangdong’s bid showed there was “an apparent collusion and a grand design to ensure that only the bid proposals of favored contractors and construction companies are accepted,” the complaint said.
Guangdong said it has filed a protest with Public Works Secretary Hermogenes Ebdane about the irregularity but no action has been taken.
On April 27, 2006, Guangdong wrote a letter to the JBIC's chief representative Hiroshi Togo detailing the anomaly. The Office of the President, the Ombudsman and Ebdane were also furnished copies of the complaint.
We sought an interview with the JBIC but we were referred to the Japan International Cooperation Agency (JICA). The JICA, on the other hand, refused to entertain our queries.
Conduits
Based on the WB inquiry report which abs-cbnnews.co/Newbreak obtained, Eduardo de Luna, owner of E.C de Luna Corp., appeared to be the main conduit between DPWH officials and contractors in fixing the bidding process in public works projects.
One of those interviewed by WB investigators had admitted his firm participated to fix the bidding in projects financed by the WB and the JBIC.
Projects under the JBIC funds are managed by the DPWH-Philippine Japan Highway Loan Project Management Office (PJHL).
Abs-cbnnews.com/Newsbreak inquiry showed that Tito Miranda, who was also named in the WB report, is usually seen at the PJHL office. Miranda has been identified by WB witnesses as one of the so-called Mafia members at the DPWH.
We also found out that DWPH assistant director for Region 4, Huillo Belleza, also tagged by WB witnesses as a member of the cartel, used to be a member of the BAC. His wife, Remedios, is also a director at the DPWH.
